UK contractors could benefit directly from the measures proposed in the European Forum for Independent Professionals’ (EFIP) Manifesto for Freelancing.
The manifesto has been presented to the European Parliament in advance of European elections in May 2014. It is designed to raise awareness of independent professionals (iPros), with the objective of getting them higher on the policy agenda at a European level.
“EFIP believes that the next European Parliament needs to take bold steps to back iPros,” believes EFIP Patron John Niland. “EU institutions must recognise that freelancing is a sustainable career, which despite the personal risk, is becoming an increasingly popular way of working in the 21st Century.”
What is the manifesto asking for?
The manifesto’s main requests are related to gaining greater recognition. This is because iPros are largely ignored or considered to be small businesses by policymakers within European governmental and European Union (EU) frameworks.
EU institutions must recognise that freelancing is a sustainable career, which despite the personal risk, is becoming an increasingly popular way of working in the 21st Century
John Niland
Commenting in an article on the PCG website, PCG director of policy and public affairs Simon McVicker explains: “For too long policymakers have made traditional employees, small to medium sized enterprises (SMEs) and big business their focus, without asking what impact policies might have on iPros. It is high time this vital way of working is included in the social conversation.”
Specifically, the manifesto asks for:
- Recognition of the growth in independent working
- Recognition of the value of iPros to the European economy.
It suggests that recognition can be demonstrated by policymakers through:
- Improved access to training and services
- Visibility in official statistics and data
- Better regulation that specifically considers the unique needs of iPros
- The appointment of an iPro envoy to champion the benefits of independent working
- Assistance for iPros to help businesses thrive.
Until this happens, McVicker believes that: “Policymakers are failing in their duty to represent every aspect of the European workforce.”
How UK contractors could benefit
The European parliament and EU might seem to have little influence on the day-to-day pressures on contractors to find and deliver contracts. But on further analysis, if only some of the manifesto’s requests are considered and accepted at a European level, it could have a positive impact on UK contractors.
For example, the manifesto call for Help for iPros to help businesses thrive has several tangible elements. It calls for a “sensible regulatory framework” to protect these “smallest of businesses” from being “forced into accepting unreasonable contract clauses and terms of payment by larger companies”.
Many contractors will know that complying with current UK late payment legislation is largely voluntary when it comes to big businesses. For most small suppliers, such as contractors, taking direct action to collect unpaid debts generally results in immediate termination.
But it is possible, if properly formulated, that mandatory legislation at a European level would ensure large clients pay small firms on time.
Access to public sector contracts and training
Many contractors will have learnt the hard way that tendering for public sector contracts is often an expensive exercise in time and paperwork with little prospect of success. EFIP’s manifesto calls for equal access for iPros to public sector procurement contracts.
EFIP also highlights that: “Training should be encouraged in this fast-moving environment to allow iPros to compete in a globalised economy.” However, many state-backed training programmes in the UK have been restricted to employers, or specifically large employers.
An EU-wide mandate to improve contractors’ access to training and the types of subsidies and tax-breaks enjoyed by large employers could make a huge difference to UK iPros, who are responsible for their own training and development.
Recognition: getting contractor issues on the agenda
The other major feature of the EFIP Manifesto for Freelancing is the drive for recognition at a policymaking level. EFIP points out that unless iPros are granted their own category in the official statistics that feed policymaking, they will remain part of the small business category.
As knowledge-based single person non-employing businesses, limited company contractors’ needs are very different from small retailers, manufacturers or service companies with employees. The positive impact labour market regulation may have on small businesses may have a less positive impact on iPros.
By consulting with iPro bodies such as EFIP and PCG in the UK, and conducting impact assessments that specifically take into account contractors, it is more likely that the regulatory framework will support and not penalise flexible knowledge workers.
PCG’s McVicker sums up the position in which contractors and iPros across Europe find themselves and the importance of EFIP’s Manifesto in driving positive change: “Independent Professionals deliver growth, flexibility and mitigation of risk for European businesses large and small.
“In 2014, discussing the economic landscape without including them in the debate fails to acknowledge the vital role they can play in the future success of our economy.”